Military and federal retirees, veterans receiving compensation from VA, and Social Security recipients will see a 2.8% Cost of Living Allowance (COLA) increase beginning in 2019. This is the largest COLA increase since 2011 when it was 3.6%, and a 0.8% increase from last year. Annual COLA increases are based on the Consumer Price Index, which measures the inflation during the 3rd quarter of each fiscal year (July, August, and September) and compares it to the previous 3rd quarter.